Mahindra will invest Rs 3,000 crore in its electric vehicle business over the next three years, while also seeking additional alliances and partnerships in the vertical.
Mahindra & Mahindra Ltd plans to invest Rs 3,000 crore in its electric vehicle business over the next three years, while also seeking additional alliances and partnerships in the vertical, a top company official said.
M&M is developing an electric vehicle platform by combining the capabilities of its global operations, including Detroit and Italy.
“So, in addition to what we have discussed, we are going to invest Rs 3,000 crore in EVs,” Mahindra Group Managing Director and CEO Anish Shah said.
Mahindra & Mahindra Ltd previously stated that it would invest Rs 9,000 crore in the auto and agriculture sectors over the next five years.
The company, which has set a target of 5 lakh electric vehicles on Indian roads by 2025, has already invested Rs 1,700 crore in India’s EV business, with another Rs 500 crore going toward a new research and development (R&D) centre.
While it has already opened an electric technologies plant in Bengaluru to manufacture battery packs, power electronics, and motors, it has also invested in a new manufacturing unit to produce EVs at its chakan plant.
Shah, who was recently appointed Managing Director and Chief Executive Officer with the mandate to oversee and be accountable for all Mahindra Group businesses, stated that the new investment is “above and beyond that.”
It will be used for a variety of purposes, including the development of a new platform capable of rolling out multiple models through the group’s various capabilities.
“…the group possesses a variety of capabilities. We have capabilities in Detroit…we have capabilities through Automobili Pininfarina and our Formula E programme,” Shah explained, adding that these capabilities will be combined to create an electric platform for India.
When asked if M&M is interested in alliances or partnerships, he stated, “For electric vehicles, we will consider alliances.” EVs are the way of the future.”
“At the moment, we only have one alliance. We recently announced a memorandum of understanding with REE (Automotive), an Israeli company. This is for smaller commercial trucks and vans. Additionally, we will have additional alliances on the EV side. As a result, we are very receptive to alliances, but they are more for the future,” Shah explained.
On whether future alliances would be technology or equity partnerships, he stated, “We are open to all possibilities at this stage, but it is too early to say at this point due to the volume of conversations that will need to take place.” Once we’ve accomplished that, we’ll have a better sense.”
Bullish on the Indian EV market, he stated that for the last mile, which he defined as three-wheelers and small four-wheelers for passengers and cargo, the cost of ownership is now comparable to that of conventional vehicles, with charging no longer a concern due to swappable batteries.
“So that segment, we believe, will take off in the near future. It should become a significant part of the economy within the next two or three years,” Shah said.
“However, it will take a long time for four-wheelers,” he stated. Infrastructure will not be built until the total cost of ownership is equal. Numerous factors must come together, but we believe that will take three to five years.